Australian wool auctions produced negative price results across the board this week. All types and descriptions were affected, with the Merino sector hardest hit. Falls ranged from 40 to 70ac on the Merino fleece wools, 50ac lower on the skirting sector and a 5 to 15ac degradation on carding and crossbred wool values. As the prices fell, grower seller resistance became more apparent, and by weeks end, almost 20% of the offering had been passed in, and another 8% on top of that withdrawn prior to selling.

The major hurdle at present remain the local logistics problems emanating from the Melbourne port which continues to hamper trade and therefore are adversely affecting wool prices. Demand for wool has been further curtailed for the time being by the apprehension across all global markets caused by failures and issues facing some within the banking sector.  The subsequent stock and share losses, wildly erratic intraday forex rates and a number of economies raising interest rates once more to curb inflation all combined to set a very risky environment to trade.

The largest Chinese top maker dominated the Merino fleece sector as they took advantage of the current lull in the market, particularly on some finer micron Euro spec sale lots. Their main competition is the sale room came from the traders who were very watchful initially and careful regarding types and volumes taken into their inventory. The traders  very much left the price setting come from the Chinese based outfits operating to offshore buying or indent type orders. 

In one bright spot for the largely poor outcomes of the week, the very best of the superfine Merino wools of finer than 19micron attracted the similarly season long stronger competition than other sectors and managed to retain their values. Purchasing was dominated by representatives of the Italian mills albeit with volumes of these superior wools being in very short supply.

A similar auction scenario was witnessed on the crossbred wools as a large China indent dominated and price support came from local trade. Cardings also had comparable selling circumstances as the main manufacturer appeared at the top of buyers lists and again ably supported by dealers of these segments of the wool market. In both areas though, a more competitive market was apparent than their Merino counterparts.  

46,000 bales are rostered to sell next week on Tuesday to Thursday.